In the exercises mentioned that:
300 working days in the year, for produce 290,000 units
but when we calculate the total days needed for produce 290,000 it will be: 181.25 days
the questions is:
- why we supposed the total days for producing 290,000, 300 days ?
- why night shift are 75 days ?
Thank you in advance
No answer yet ?!!
thanks for reaching out!
Would you be able to specify which course and which lecture your question is referring to? Thanks so much!
The 365 Team
Hi! The Course is INTRODUCTION TO BUSINESS ANALYTICS. And its about exercise 3.4 Value Driver Solution. I also have the same question about the 75 value for the night shifts.
Thank a lot for your interaction and answer.
Thanks for your question and apologies for the delayed reply.
First of all, the number of units to be produced is 290,000 and not 300,000 (the amount of units to be sold) because the company has an inventory of 30,000 units and will sell 10,000 of these. Therefore 290,000 units need to be produced.
To answer the second question – why 75 night shifts –> well, that’s assuming that night shifts will be minimized by the plant manager as they are more expensive. So, they’ll work a maximum of 300 day shifts and the rest will be compensated for with night shifts.
Hope this helps!
Thank you dear
- For 290 units ——-> we need 180 days to produce 290,000 units (if we work 24 hours), why we assumed 300 days to produce 290,000units?
- Clear, done
Please maximize the number of shifts worked in the day to lower the cost. Feel free to post your calculation here. thanks